Video game retailer GameStop Corp. (GME) is set to report its second-quarter 2025 results next week, on September 9. The meme stock has dropped about 28% year-to-date, hurt by weaker sales in its retail business, concern over its Bitcoin push, and doubts about how it will use its large cash pile. Wall Street analyst Alicia Reese of Wedbush remains bearish, with her price target pointing to more than 40% downside from current levels.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
What to Expect on September 9
Wall Street analysts expect the company to report earnings of $0.19 per share, versus $0.01 in the year-ago quarter. Also, revenue are expected to increase by 13% from the year-ago quarter to $900 million, according to data from the TipRanks Forecast page.
With Q2 earnings just days away, investors will be looking for signs that GameStop can stabilize its operations and deliver a clearer long-term strategy.
GME’s Q1 Shows Profit Surprise and Sales Slump
In the last reported quarter, GameStop reported earnings per share (EPS) of $0.17, well ahead of Wall Street’s $0.04 estimate. The company also posted a net profit of $44.8 million, marking a sharp improvement from a loss in the prior year. However, revenue fell 17% year-over-year to $732.4 million, missing analyst expectations of $754.2 million, as weakness persisted in its core video game hardware and software business.
One bright spot was collectibles, which grew 54% to $211.5 million in the quarter. GameStop also ended Q1 with a hefty cash balance of $6.4 billion.
According to Main Street Data, GME’s Hardware and Accessories segment has been on a downward trend, with recent quarters showing significant declines from earlier levels.
Is GME Stock a Buy, Sell, or Hold?
GameStop’s fundamentals and unpredictable trading patterns have led many Wall Street analysts to take a step back from covering the stock. One of the few analysts still covering this stock is Alicia Reese of Wedbush, who continues to maintain a Sell rating. According to her, she sees more than 40% downside for GameStop based on her price target of $13.50 per share.
